Millennials Are Renting Rather Than Purchasing Their Own Home

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Owning a home has long been the goal of many individuals. Although it is definitely something worth going after when saving some hard-earned money, it may not always be the best financial decision in the long-term. A person might even end up paying way more on their mortgage than expected over the course of a few years. 

The decision to begin buying houses can be affected by the time period as well as the particular market. Issues related to these aspects can cause significant financial problems. This may lead to loss of money, foreclosure and bankruptcy in some serious cases. 

Due to the risks of purchasing a home, many have decided to prolong their purchases. However, when the time comes, we want to get the most out of it as we can. For example, Jamie Buys Houses say that selling a house through an agent is not for everyone, so one can opt for other ways.

Homeownership in the United States is continually declining. The Census Bureau has shown that only a little over 64% of Americans actually own their own homes. The rest of Americans have taken to renting to cut down on costs and save money in the long-run. Here are a few factors to take into consideration before making the decision to rent or purchase.

Financial Situation

Take the time to examine whether or not the decision will affect any future goals. For example, keeping track of one’s financial situation is extremely important when considering retirement or perhaps paying for college. As only 20% of millennials own a home, making the decision to rent may be the best for saving money.

Property Value

In addition, if purchasing a property is an option, it is essential to research whether or not its value will increase or decrease. Purchasing a home that will eventually decrease in value over the years can cause homeowners to lose big on their investments. 

Researching the area including the types of homes being built there, the tax rate, and sometimes societal aspects such as the school system or public works department could be a great way to indicate future property value.

Cost Comparison

When making the decision to purchase or rent a new home, there are some numbers that need to be considered. For example, purchasing a home can be extremely expensive. Property values in nice areas can vary significantly and may be too costly.  In addition, will the expenses to renovate or furnish the home also cost too much? It is important to take into consideration the amount of time the homeowner will be staying in the area.

When renting, price comparison is essential in making the best financial decision. Some apartments, depending on the size and area, can cost thousands of dollars of month. It is important to do the math and make the best decision to save some cash over the years.

Conclusion

Overall, there are a few things that need to be taken into consideration. Decisions such as renting or buying a home are essential in determining one’s financial future and security. For more information, try looking online for the best ways to cut down on some expenses and start saving towards the right financial goals.

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